KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Nepal’s foreign direct investment (FDI) stock increased by 11.8% to Rs 295.50 billion by the end of the 2022-23 fiscal year, as reported by Nepal Rastra Bank. India leads with Rs 103.5 billion in FDI, followed by China, Ireland, Australia, and Singapore. In terms of paid-up capital, India also holds the top position.
Meanwhile, the Securities Board of Nepal (SEBON) remains without a chairman following Ramesh Hamal’s retirement on January 6, 2024. The government’s delay in appointing a new chairperson has stalled plans for 22 companies to issue rights shares worth Rs 19.40 billion.
Additionally, the Hetauda Cement Industry in Hetauda Sub-metropolitan City-9 has resumed clinker production after a two-and-a-half-month break. The halt was due to raw material shortages and financial issues, but the industry is now back in operation with sufficient coal and a stockpile of ready cement.
Nepal’s FDI stock grows 11.8% to Rs 295.50 billion
Nepal’s foreign direct investment (FDI) stock grew by 11.8% to reach Rs 295.50 billion at the end of the 2022-23 fiscal year, according to a recent survey report.
The Survey Report on FDI in Nepal, released by Nepal Rastra Bank on Friday, highlights that India leads with an FDI stock of Rs 103.5 billion, followed by China at Rs 35.5 billion, Ireland at Rs 22.6 billion, Australia at Rs 19.1 billion, and Singapore at Rs 18.8 billion.
FDI stock represents the total value of foreign investors’ capital, reserves, and retained profits in Nepal.
In terms of paid-up capital, a key component of FDI stock, India is also the leader with Rs 52.6 billion, followed by China with Rs 28.5 billion, South Korea with Rs 13.9 billion, and Ireland with Rs 10.7 billion.
Govt. delay in appointing SEBON Chair stalls Rs 19.40 billion rights share plan
The delay in appointing a chairman for the Securities Board of Nepal (SEBON) has stalled the plans of 22 companies to issue rights shares totaling Rs 19.40 billion.
Since Ramesh Hamal’s retirement on January 6, 2024, SEBON has lacked leadership.
The government’s inability to fill this position over the past eight months, due to political disagreements, has disrupted daily operations and left the role of chairman unfilled.
Currently, 22 companies are awaiting approval to issue 194,025,229 rights shares to their shareholders.
Among these companies, 14 are in the hydropower sector and eight are insurance firms.
Hetauda Cement Industry resumes operations
The Hetauda Cement Industry, situated in Lamsur, Hetauda Sub-metropolitan City-9, has restarted clinker production after a two-and-a-half-month hiatus.
The production was previously halted due to challenges such as a shortage of raw materials, including coal, unsold cement, and insufficient funds for machinery repairs.
A few months ago, the industry struggled with unsold cement, but now, according to Narendra Bhandari, Chairman of Hetauda Cement Industry Limited, they have approximately 3,500 sacks of ready cement in inventory.
The industry has resumed operations with enough coal to last about 20 days.
NRB keeps foreign exchange rates steady for today
The Nepal Rastra Bank (NRB) has released today’s foreign currency exchange rates, which remain unchanged from Saturday.
The rates are as follows: 1 US dollar is bought at 133.89 rupees and sold at 134.49 rupees; 1 euro is bought at 148.39 rupees and sold at 149.06 rupees; 1 British pound is bought at 176.45 rupees and sold at 177.24 rupees; 1 Australian dollar is bought at 91.01 rupees and sold at 91.42 rupees; 1 Kuwaiti dinar is bought at 438.33 rupees and sold at 440.29 rupees; and 1 Bahraini dinar is bought at 355.21 rupees and sold at 356.80 rupees.
(Prepared by Srija Khanal)
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